Sensex and Nifty declined last week. Market cap of top 10 companies decreased by Rs 4.48 lakh crore. Heavy losses in SBI, HDFC, TCS and Airtel, global tensions and rising crude oil prices are raising investor concerns.
Market Cap: Last week was very difficult for investors in the Indian stock market. Amid rising tensions in the Middle East and rising crude oil prices, both BSE Sensex and Nifty recorded huge losses. BSE’s 30-share Sensex closed down by 4,354.98 points or 5.51 percent, while National Stock Exchange’s Nifty closed with a loss of 1,299.35 points or 5.31 percent.
The biggest impact of this decline was on the market cap of the top 10 companies. Overall, the market valuation of these companies reduced by Rs 4.48 lakh crore. This is a warning sign for investors that global tensions and rising crude oil prices are having a deep impact on the domestic market as well.
SBI suffered the most loss
Last week, the biggest loss was seen in the shares of State Bank of India i.e. SBI. SBI’s market cap declined by Rs 89,306.22 crore to Rs 9,66,261.05 crore. Such a huge fall in bank shares has not only increased the concern of investors but the short-term situation of the banking sector also looks unstable.
After SBI, HDFC Bank suffered the biggest loss. The market cap of HDFC Bank declined by Rs 61,715.32 crore to Rs 12,57,391.76 crore. This decline of both the banks has indicated caution for the domestic banking sector.
Reduction in market cap of Bajaj Finance and TCS
The market cap of Bajaj Finance also decreased significantly last week. The company’s valuation declined by Rs 59,082.49 crore and its market cap reached Rs 5,32,053.54 crore.
At the same time, the market cap of IT sector giant Tata Consultancy Services i.e. TCS declined by Rs 53,312.52 crore to Rs 8,72,067.63 crore. The fall in TCS shares has increased the concern of IT sector investors.
ICICI Bank and other big banks also affected
The market cap of ICICI Bank also declined by Rs 42,205.04 crore to Rs 8,97,844.78 crore. It is clear from this that in the banking sector, not only SBI and HDFC banks but other big banks have also been affected due to global stress.
These declines have made investors feel the need to focus on short-term strategy and keep the portfolio balanced.
Huge loss in valuation of Bharti Airtel, Reliance, LIC and Infosys
Shares of team infrastructure and telecom companies were also affected. Bharti Airtel’s market cap declined by Rs 38,688.78 crore to reach Rs 10,28,431.72 crore.
Reliance Industries’ valuation declined by Rs 33,289.88 crore and its market cap stood at Rs 18,68,293.17 crore.
Apart from this, the market cap of public sector giant LIC declined by Rs 31,245.49 crore to Rs 4,88,985.57 crore.
The market cap of Infosys also declined by Rs 24,230.96 crore to reach Rs 5,06,315.58 crore. It is clear from these figures that IT and public sector companies were also viewed negatively by investors last week.
Decline in valuation of Hindustan Unilever
The market cap of consumer goods company Hindustan Unilever was also affected. The market cap of the company declined by Rs 15,401.57 crore to Rs 5,07,640.94 crore. This shows that even in the FMCG sector, investors exercised caution and sold anticipating a decline.
This decline not only affected the market cap of top companies but also weakened the investor sentiment in the market.
Impact of global tensions and crude oil prices
Experts believe that the conflict in the Middle East and the rise in crude oil prices have affected global economic stability. This has increased inflationary pressure and created a feeling of fear among domestic investors.
Rising crude oil prices increase expenses for Indian industries and impact investors’ returns. This is the reason why last week there was a sharp decline in both Sensex and Nifty.
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